Trump's Trade Tariff Updates
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Five Minute Market Update:
With tariffs dominating inboxes, here’s a no-fluff, must-know summary of the key tariff updates for March 2025:
1. Retaliatory Tariffs against the U.S.: (3/14/2025)
- The EU has announced retaliatory tariffs on U.S. industrial and farm products now that the 25% tariff on aluminum and steel has gone into effect. This will cover an estimated $28 billion in U.S. goods ranging from meat to home appliances to motorcycles and peanut butter. The tariffs are expected to be in place on April 13th, 2025. In her statement, the Commission President Ursula von der Leyen stated the EU "will remain open to negotiation."
- Canada has also announced retaliatory tariffs impacting steel, aluminum, computers, sports equipment, and cast iron products estimated at $29.8 billion.
- Canada has proposed an additional $125 billion in tariffs on over 4000 different HTS codes with comments due on 4/2/2025.
2. Reciprocal Tariff Policy & New Tariffs: (2/19/2025 & 2/13/2025, 2/26/2025)
- The White House launched a plan to examine non-reciprocal trade relationships, with investigations starting soon and fiscal impact assessments due by August 13. This initiative targets nations like India, Brazil, Vietnam, Argentina, Southeast Asia, Africa, Japan, the EU, and China, which have been identified for imposing tariffs on U.S. agricultural goods, automobiles, and non-tariff barriers. These are expected to begin April 2nd, 2025.
3. Steel & Aluminum Tariff Changes: (3/11/2025)
- Effective March 11, tariffs on steel imports are supposed to increase to 25%, and aluminum tariffs are supposed to jump from 10% to 25%. Additionally, at that time, all previous trade agreements for aluminum and steel will become invalid, and no new exclusions will be granted, though current ones remain valid until expiration.
- Duties on new derivative steel or aluminum articles are postponed until “public notification by the Secretary of Commerce, that adequate systems are in place to fully, efficiently, and expediently process and collect tariff revenue on covered articles.”. Check the HTS codes here:
4. China, Canada, & Mexico Tariff Updates: (3/5/2025, 3/6/2025)
- 10% tariffs were imposed on products from China, effective February 4th, with exemptions for goods shipped before February 1st. An additional 10% was levied on March 4th, 2025.
- 25% tariffs are currently imposed on Mexico and Canada imports (10% for Canadian energy); as of March 4th, 2025. A carve-out exemption has been made for Automotive products for one month (April 4th, 2025).
- On March 6th a one month extension was granted to goods for both Canada and Mexico falling under the USMCA. This impacts roughly half of imports from both countries.
- 25% tariffs have been announced as "coming soon" for automobiles and other products from the EU.
5. De Minimis Paused: (3/5/2025)
- President Trump’s Executive Order (the one that imposed additional 10% tariffs on U.S. imports from China) also included a provision for the curtailment of de minimis-qualifying (duty-free treatment of goods valued under $800 per shipment) shipments from China, effective February 4.
- On February 7, Trump paused his administration’s repeal of the de-minimis plan to allow for time to establish an effective, administrative process.
- The de-minimis exemption for Canada and Mexico will temporarily remain in place until tariff revenue collection systems are ready.
6. China Tariff Retaliation Measures: (3/5/2025)
- In response to U.S. tariffs, China imposed 15% tariffs on coal and LNG and 10% on crude oil, machinery, and large-engine vehicles, effective February 10.
- In response to the additional U.S. tariffs enacted March 4th, 2025, China announced reciprocal tariffs on U.S. agricultural products including chicken, soy, pork, and beef effective March 10th, 2025.
7. Rumors of Easing Russian Sanctions: (3/5/2025)
- The U.S. administration is reportedly drafting plans to ease sanctions on Russia to improve diplomatic relations and address the ongoing conflict in Ukraine. This move has raised concerns among European allies, who emphasize the importance of continued support for Ukraine.
What Our Customers Are Doing:
To preempt potential tariff impacts, many shippers are diversifying supply chains by exploring new supplier countries. Others are adjusting inventory strategies, including increasing stockpiles of critical goods and renegotiating supplier contracts to accommodate potential cost changes. They are also working with our seasoned regulatory compliance team to review and stay ahead of classification changes to save on duties.
If you have any questions about how these changes might affect your shipments, don’t hesitate to reach out.
March Updates
President Trump has walked back his promise to double the Aluminum and Steel Tariffs from 25% to 50%.
In addition, the EU has announced retaliatory tariffs on U.S. industrial and farm products now that the 25% tariff on aluminum and steel has gone into effect. This will cover an estimated $28 billion in U.S. goods ranging from meat to home appliances to motorcycles and peanut butter. The tariffs are expected to be in place on April 13th, 2025. In her statement, the Commission President Ursula von der Leyen stated the EU “will remain open to negotiation.”
Canada has also announced retaliatory tariffs impacting steel, aluminum, computers, sports equipment, and cast iron products estimated at $29.8 billion.
President Trump has announced that the Canadian Aluminum Import Tariffs will double from the recently enacted 25% to 50%, effective on March 12th in retaliation for Canada Energy Tariffs.
Promised Tariffs Go Into Effect on Canada, Mexico, and China:
Many trade changes that took place overnight!
Effective March 4, 2025, the United States has implemented significant tariffs affecting imports from Canada, Mexico, and China:
– For Canada and Mexico, a 25% tariff has been imposed on most imports. Canadian energy products, including oil and natural gas, are subject to a 10% tariff.
– The de minimis exemption (which allows U.S. imports under $800 to enter duty-free) will temporarily remain in place for goods from Canada and Mexico.
– The exemption will end only when the Commerce Secretary confirms that tariff revenue collection systems are ready.
– For China, the existing tariffs implemented on February 4th have been increased from 10% to 20% on all products, with exclusions for donations, informational material, products for personal use, and Chapter 98.
In retaliation to the U.S. tariffs:
– Canada announced 25% tariffs on U.S. goods totaling approximately $155 billion CAD.
– China announced plans to impose reciprocal tariffs on key U.S. agricultural products, including chicken, pork, soy, and beef, effective March 10.
– Mexico just announced that it would announce tariffs on U.S. products on Sunday, March 9.
The U.S. administration is reportedly drafting plans to ease sanctions on Russia to improve diplomatic relations and address the ongoing conflict in Ukraine. This move has raised concerns among European allies, who emphasize the importance of continued support for Ukraine.
February Updates
Trump has pushed the Canada/Mexico tariffs back a month to April 2nd and has also announced a 25% tariff on cars and other products from the EU will be coming.
The White House has issued a new memorandum on reciprocal tariffs, further detailing the changes to U.S. trade policy. Here’s what you need to know:
– The administration is starting to identify non-reciprocal trade relationships, but no defined timeline for action has been set.
– Agencies will begin investigating the impact of non-reciprocal trade arrangements, with reports submitted directly to the administration once investigations are complete.
– The Office of Management and Budget (OMB) will assess the fiscal impact on the federal government and the burden of information requests on the public. This review must be completed by August 13.
Based on this information, it will likely take several months before this initiative gains traction. Implementation will also take time, as evidenced by recent trade actions like the expiration of Section 321 for China and the derivative steel and aluminum articles.
For more detail, you can view the official White House memo here: Reciprocal Trade and Tariffs Memo
On Friday, February 14th, the official annex lists (containing all the specific HTS codes) were made available for steel and aluminum. The full list of codes can be found below in links to the official Federal Register Memos.
As a reminder, this renders all previous aluminum and steel agreements with trading partners invalid, effective March 12th. No exclusions or exemptions will be issued. However, if you have a current exclusion, it will be effective until the expiration date or until the volume has been exhausted.
– Aluminum Memo (Page 19 of Memo)
– Steel Memo (Page 24 of Memo)
For a better look at the HTS codes included, check out out Blanket Tariffs page.
President Trump has announced a reciprocal tariff policy, aiming to match the tariffs and trade barriers imposed on U.S. exports by other nations.
Nations potentially facing higher U.S. tariffs include:
– India
– Brazil
– Vietnam
– Argentina
– Several Southeast Asian and African Countries
– Japan
– European Union Member States
– China
These nations have been identified for their tariffs on U.S. agricultural goods, automobiles, and other exports, as well as for non-tariff barriers such as government subsidies and restrictive regulations on American companies mentioned above.
President Trump signed an Executive Order on February 10, 2025, removing exceptions and exemptions from his 2018 tariffs on steel, resulting in all steel imports being taxed at 25%. The tariffs on aluminum were also raised from 10% (2018) to 25%.
To retaliate against the 10% U.S. tariff on Chinese goods, China introduced the following additional duties on U.S. exports:
– 15% tariffs on coal and liquified natural gas (LNG), covering goods under eight Harmonized Tariff Schedule (HTS) codes
– 10% tariffs on crude oil, agricultural machinery and large-engine vehicles, affecting commodities under 72 HTS codes
These tariffs are scheduled to take effect on February 10, 2025.
The US Postal Service (USPS) will not be implementing the ban on all inbound packages from China and Hong Kong announced on February 4. In the initial notice, USPS said that it would no longer accept parcels from China and Hong Kong after the US imposed an additional 10% tariff on Chinese goods and ended the de minimis exception that allowed small value parcels to enter the country without paying tax. According to USPS officials, it will work with CBP to implement a collection process for the new China tariffs to avoid delivery disruptions.
Trump’s Canada and Mexico Tariffs Postponed
The implementation date of the proposed tariffs against Canada and Mexico has been postponed by one month, moving the effective date from February 4, 2025 to March 4, 2025.
Both countries have offered concessions that appear to have contributed to the postponements:
– Trudeau, the Prime Minister of Canada has committed to appointing a fentanyl czar and implementing a border plan.
– Mexico agreed to add a significant number of national guards to their border, to stymie the flow of drugs and illegal immigration into the US.
As of now, the 10% tariff on China and Hong Kong imports remains unchanged. Please refer to the Federal Register Notice and the instructions released to the trade. In addition, the China de minimis loophole remains closed at this time.
President Trump announced today that he has agreed to immediately pause tariffs proposed against Mexico for one month after President Sheinbaum agreed to send 10,000 Mexican troops to the border to help combat drug trafficking.
What We Know So Far:
President Trump has invoked the International Emergency Economic Powers Act to issue three executive orders imposing new ad valorem tariffs:
– 25% on products from Mexico
– 25% on products from Canada (except energy products, which are at 10%)
– 10% on products from China
These additional tariffs take effect on Tuesday, February 4, 2025, on top of existing duties (e.g., Section 301, Section 232, antidumping/countervailing duties).
While the Canadian-focused order has been published, the orders for Mexico and China are still pending. However, they are expected to follow the same framework, apart from the reduced duties for Canadian energy imports.
Key Takeaways
1. Effective Data & Exceptions
– The tariffs take effect Tuesday, 2/4, but goods already on the water before 2/1 are exempt.
2. Unclear Scope
– The Department of Homeland Security (DHS) will define covered goods via a Federal Register notice, but its publication before the tariff deadline in uncertain.
3. Open Questions
– Will tariffs apply to goods originating in Mexico/Canada under USMCA?
– Will tariffs cover Chinese goods not already subject to Section 301?
4. Canadian Energy Definition
– Includes crude oil, natural gas, refined petroleum, uranium, coal, biofuels, and critical minerals under 30 U.S.C. 1606 (a)(3).
5. No Exclusions Announced
– No product exclusions or exclusion process has been provided.
6. Duty Drawback Prohibited
– The new tariffs cannot be recovered under duty drawback programs (19 CFR Parts 190, 191).
7. De Minimis Eliminated
– Duty-free treatment under Section 321 (for low-value shipments) is removed for goods from Canada, Mexico, and China.
8. Chapter 98 Uncertainty
– Past duty programs allowed exemptions under Chapter 98 (temporary imports, agriculture, etc.). It’s unclear if this applies here.
9. Potential Retaliation
– Tariffs could increase if Mexico, Canada, or China retaliate.
– Canada has announced retaliation:
– 25% tariffs on C$30 billion in U.S. goods (Feb 4)
– More tariffs on C$125 billion in three weeks (Feb 21)
– Canada has now published its retaliation list
10. Possible Reversal
– The Secretary of Homeland Security can recommend tariff removal, but no clear criteria for lifting them have been set.
What’s Next?
More updates are expected by 2/3 or 2/4. If you’d like to discuss further, please let us know.
January Updates
Karoline Leavitt, White House Press Secretary, has reported that 25% tariffs on Canada, Mexico, and 10% on China will be enacted on February 1, 2025. It is unclear at this time whether specific products will be exempt.
The U.S. and Colombia have reached an agreement to resolve a trade and immigration dispute, ensuring stability for their trade relationship:
– Colombia agreed to accept deported migrants, including those transported on U.S. military aircraft, avoiding threatened U.S. tariffs and sanctions.
– President Trump levied a 25% tariff that would ramp to 50%. President Petro responded with a 50% tariff on US goods a short while later.
– Proposed U.S. tariffs of up to 50% on Colombian imports and additional sanctions, including travel bans on Colombian officials, have been suspended following the agreement.
– Similar challenges have arisen with other countries regarding deportation policies, including Mexico and Brazil, highlighting broader implications for trade and immigration in the region.
Tariffs Hit Snooze, For Now…
President Trump has delayed imposing new tariffs and put a pause on new rules or regulations until they’re reviewed by his appointees. Here’s a quick rundown of what’s happening:
– A top-to-bottom review of trade policies is underway, with agency heads reporting back by April 1.
– Mexico and Canada could face 25% tariffs as early as February 1, depending on outcomes.
– Potential actions include new tariffs, additional 301 tariffs, changes to section 321 de minimis, and updates to steel and aluminum tariffs.
– NPRMs (like those affecting section 321 entries) are postponed for 60 days for further review.
– Potential 10% tariff on goods from China, also set to begin on February 1.
The full White House memo can be viewed here.
Customs and Border Protection (CBP) emphasized their ongoing commitment to security, safety, and facilitating legitimate trade during a recent call with industry leaders.
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